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Issue Evaluate 15 tasks identified by DDTC Recommend the order in which they should be accomplished. Provide reasoning behind the recommended priorities Consider the USG actions to date, and level of effort associated with each task. Respect continuance with Export Control Reform effort DTAG may recommend other tasks with explanations and rationale for priority. 2

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Task List New definitions – levels of maintenance* Revised definition of defense services* New exemption for replacement parts* Revised definition of public domain* License exemption for certain defense articles incorporated into commercial end-items* Brokering update* Australia Defense Trade Cooperation Treaty implementation regulations* Updated “by or for” the USG exemption USG program licenses Elimination of foreign party signature requirement on TAAs Revised definition of technical data Clarification of records maintenance requirement Revise temporary import license requirements to apply only for those items that are on the USMIL Development of a single form for use by all agencies for export applications Revise exemptions referring to transshipments * Indicates previous publication as proposed rules Task Benefit Ease Status 1 2 3 4

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USG Process Actions associated with each task: Development of the proposed rule Submission to OMB for interagency coordination Publication of the proposed rule Reconciliation of public comments/development of the final rule Submission to OMB for publication approval Publication of final rule Note: Given the limited resources available to the USG for this regulatory effort, only one task can be worked at any given time 5

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Prioritization Process Reviewed list, discussed methodology Agreed to principles: Benefit to USG Benefit to industry and academia Consistent with Export Control Reform Current progress in USG process Each member assigned High, Medium, or Low to each task Priority established based on vote count Establish rationale for top seven 6

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Prioritization (2) 8. Updated “by or for” the USG exemption 9. Revise exemptions referring to transshipments 10. Elimination of foreign party signature requirement on TAAs 11. Clarification of records maintenance requirement 12. Revise temporary import license requirements to apply only for those items that are on the USMIL 13. Development of a single form for use by all agencies for the export applications 14. USG program licenses 15. Australia Defense Trade Cooperation Treaty implementation regulations* 8

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Priority Rationale – Public Domain 4. Revised definition of public domain Benefit to USG – immediate workload reduction by not having to process non-essential applications; ability to focus on essential applications; industry compelled to exercise due diligence. Benefit to industry – reconciles definitions in ITAR and EAR; clarity of definition; a tie to “defense services” reduces license applications for services based on public domain data. 12

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Priority Rationale – Replacement Parts 5. New exemption for replacement parts Benefit to USG – Eliminates duplicative work since the parts would have been approved in a TAA or as part of the system hardware license. Furthers USG goal of interoperability with foreign partners. Benefit to Industry – increasing the exemption limit to $1500 and the number of annual shipments to 48 enhances industry’s ability to support urgent requirements for allies and friendly nations. 13

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Option to identify additional tasks Tasking: “The DTAG may recommend, and may include in their prioritization, tasks not listed. Recommendations should be sufficiently documented in the report to allow the Department to understand and potentially action the recommendation(s).” Additional tasks, perhaps assigned to DTAG for clarification/definition 16

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Additional Task Recommendations (1) Overlapping, disconnected definitions: harmonize updated definitions as they relate to each other in ITAR and EAR Electronic transmission of technical data; cloud storage – DDTC is working on this topic; recommend this as a new task for DTAG due to the scope and complexity of the task, and to provide industry input 17

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Summary / Conclusions Professional diversity of the working group was very beneficial to arriving at a prioritization of the tasks. Addressed only top 7 in rationale/detail The top 7 tasks will take months to complete Recommend another reassessment of priorities in 6-12 months – re- task DTAG? Highest recommended priority always takes priority Future DTAG tasking suggestions can help clarify issues for DDTC resolution 20